PLANS LONG-TERM DATA CENTER EXPANSION
Globe, a Philippine-based digital platform, has signed an exclusivity agreement with ST Telemedia Global Data Centres (STT GDC) to form a joint venture that will enable the carve-out of Globe’s data center business (Globe DC) in the Philippines.
Since 2001, Globe has been running its data center portfolios through its wholly-owned subsidiary Innove Communications, Inc. which offers carrier-neutral colocation space, managed security, mission-critical applications and cloud solutions.
According to Globe, its data center facilities currently have a midterm expansion potential of up to 45MW power. The company further believes that a partnership with STT GDC is the next important step that will accelerate its data center growth strategy and market share position in the Philippines, and bolster its plans towards a longer term business development.
“The Philippines is strategically positioned to capture the booming global demand for data centers. Our strong track record and extensive customer reach, together with STT GDC’s deep operational expertise, position us well to be a leading data center company in the Philippines,” said Ernest L. Cu, President and CEO of Globe.
“Our potential joint venture with STT GDC will therefore be a significant multi-year growth driver for Globe and will further drive our transformation into a digital platform, this time into B2B space, after success of B2C with GCash.”
Under the exclusivity agreement, Globe and STT GDC will enter into discussions and aim to sign definitive agreements related to Globe DC. However, there is no certainty that such discussions will lead to definitive transactions.
If successful, the transaction is expected to take the form of a joint venture, in which Globe will remain a significant shareholder while the investment into Globe DC will be consistent with Globe’s long-term data center business strategy which include partnering with a leading data center operator to create a top tier data center business in the Philippines and regionally.